SBI raises up to Rs 3,105 crore by issuing Basel-III-compliant bonds

By: |
Published: August 30, 2019 7:33:20 PM

The country's largest lender SBI on Friday said it has raised up to Rs 3,105 crore by issuing bonds under the Basel-III regulations.

The Indian banking system has been implementing Basel-III standards in phases since April 1, 2013

The country’s largest lender SBI on Friday said it has raised up to Rs 3,105 crore by issuing bonds under the Basel-III regulations. The committee of directors for capital raising at its meeting on Friday had accorded approval to allot 31,048 non-convertible, taxable, perpetual, subordinated, unsecured Basel-III-compliant bonds for inclusion in additional tier-I capital of the bank, SBI said in a regulatory filing to exchanges.

The debentures bear coupon of 8.75 per cent per annum payable annually with call option after 5 years or any anniversary date thereafter, aggregating to Rs 3,104.80 crore to the bond subscribers on Friday, SBI said. To comply with Basel-III capital regulations, banks need to improve and strengthen their capital planning processes. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

The Indian banking system has been implementing Basel-III standards in phases since April 1, 2013. The banks are expected to fully implement these norms by March 2019, however, the Reserve Bank of India has shifted this date further by March 2020.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Registration of 1,604 NBFCs cancelled
2Value of reported bank frauds surge 74 percent in 2018-19 financial year
3Non-food credit by scheduled commercial banks rises 12.3 percent